Half of Australians Pay No Net Tax
May 9, 2014 Taxation in Australia
SYDNEY – Many Australians, especially single parents and people who live alone, pay less in income tax than they recieve back from the government in the form of tax breaks and welfare.
Approximately 48 percent of Australian households receive more in tax credits, welfare, allowances and superannuation than they pay in income taxes, according to the results of a new study released on May 8th by the National Centre for Social and Economic Modelling in Australia.
The newly released study shows that the average Australian household pay approximately AUD 12 935 per year in income taxes, while receiving AUD 9 515 back in various benefits and tax breaks.
The study also showed that as 85 percent of single parent households receive more from the government than they pay back in taxes, while nearly a quarter of all two-parent households pay less tax than they receive in support.
Single person households also receive significant support from the government, with approximately 55 of them paying no net tax.
The authors of the study also pointed out that nearly 3.2 million of the 12.2 million households in the country are not even of working age, either being too young to work, studying, or retirees.
Commenting on the findings of the study, one of the main researchers behind the report Ben Phillips said that Australians do not realize how much support they receive from the government, and “…most people rightly or wrongly think they pay too much tax and don’t receive enough benefits,” while in actual fact a significant portion of the population effectively does not pay income tax.
Photo by: Corey Leopold